Think you don’t need tenant insurance? Think again.

There are many reasons to get tenant insurance, but tenant’s insurance is so widely misunderstood and undervalued among those of us who rent our home – renters. But why? Leo is here to shed light on why landlords want you to have insurance, and why it should be important to you.

It may seem obvious, but it’s important to understand that the likelihood of an accident increases proportionately to the amount of people living in a building. So a building with 50 residents is 5 times more likely to encounter an incident than a building with 10 residents.

Each year at least a couple of apartment buildings burn down in every city across Canada. There have been three major fires in the Vancouver region in 2016, and news reports of a hundred or more residents who suddenly lose their homes are common.

So if tenant insurance is important, why don’t we buy it?

Unfortunately you can’t buy it when you need it – you must purchase a policy before an incident happens. We also tend to underestimate the cost to replace belongings, but insurance pays for new, store bought items which often cost thousands more than we anticipate.

How much will it cost to replace your belongings? Think about just the basics: to replace your TV, couch, bed, computer, kitchen utensils and clothing, it can cost over $15,000. And those are just the basics.

You may also overlook the out-of-pocket expenses required in the event you are displaced from your home due to an accident beyond your control. Just three nights can cost $1,000 if you consider the hotel, taxi, restaurants, and additional expenses. Do you have the luxury of staying with friends or family for a longer period? What about a change of undies? These are the pressing questions to ask as the cost of temporary accommodation for two months could be crippling.

Coverage for personal property and temporary accommodation is available online at Leo Insurance. Coverage also includes liability protection, earthquake coverage (they do happen here in BC) and even identity theft.